Mitsubishi will build more in Western Europe

Mitsubishi Motors announced Monday it would cease later this year to build cars in its sole plant in Western Europe, the Netherlands, a move that was expected after the fall of sales on the continent.

Cars Nederland site, or NedCar, built the Colt and Outlander 4×4 but less than 5% of the total production of Mitsubishi, or 1.1 million vehicles for the year ended 31 March last.

NedCar production, jobs that 1,500 persons, fell to 50,000 vehicles per year, while it has a maximum capacity of 200,000.

Sales of Mitsubishi Motors in Europe accounted for 340,000 vehicles in fiscal 2007/2008 but had fallen to 218,000 in 2010/2011. 

Mitsubishi Motors is building a new factory in Thailand and plans to increase production in Brazil and China.

NedCar, based in Born, was born in 1991 as a joint venture between Mitsubishi Motors, Volvo and the Dutch state. Mitsubishi became the sole owner in 2001 having bought out his partners.

France and Germany step up their thoughts on a radical redefinition of the euro zone to force an economic, fiscal and tax in the short term and without necessarily the case of a slow and tedious review of the European treaties.

Paris and Berlin have agreed this week to propose by December 9 – when the next European summit – an ambitious reform of the Lisbon Treaty, but behind the scenes, preparations are being made around the tool more flexible and easily activated, as an intergovernmental treaty outside the community or a bilateral Franco-German if members of the euro area do not follow.

The second is to adopt a purely bilateral approach by including in the ongoing revision of the Franco-German Elysée in 1963 a high degree of harmonization in fiscal and social law.

The advantage of this approach is twofold for France and Germany. First, it allows to circumvent the unanimity required for a revision in formal treaties.

On the other hand, it places the responsibility to recalcitrant countries. This is particularly true of Great Britain who wanted to use the exercise to repatriate a number of powers to London.

CRISIS PLAN

Officially, the goal of Berlin is to obtain a limited revision of Article 126 of the Treaty of Lisbon on the Stability and Growth Pact.

International creditors of Greece will press Saturday the country's political parties to commit in writing to support the austerity measures required for a new rescue plan and avoid bankruptcy.

Representatives of the European Commission, the European Central Bank and the International Monetary Fund (IMF) will meet with the leader of New Democracy (ND preservatives) was said openly reluctant to provide support for the treatment of austerity imposed by donors.

Cigarette prices increased by 6%

Cigarette packs will cost on average 30 cents more starting Monday. This should bring 600 million euros to the state in one year.

Cigarette packs will cost on average 30 cents more starting Monday in France, a 6% increase sought by the government should have little effect on consumption, but that will bring 600 million euros a year in State to Safely smokers will find it in a package less than 5.70 euros in their tobacconist. For the first time, the Marlboro (the best-selling package with nearly 25% market share) will pass the bar 6 euros to 6.20 euros.The government has allowed manufacturers to revise their prices, anticipating an increase in minimums of perception which must be passed by Parliament in the law on financing of Social Security.

This increase was announced by Prime Minister Francois Fillon, in late August, when presenting the plan anti-government deficit. It should bring 90 million euros this year and 600 million in a full year.

Taxes are 80% of the price of a pack of cigarettes. Most (over 10 billion euros in 2010) goes into the coffers of the social security system. Fillon also announced a further increase of 6% in 2012, without specifying the date. This is the third consecutive year that the cigarettes in the fall recorded such an increase (30 cents per pack), well above inflation.However, sales have never declined so far in the same proportions.

54.8 billion cigarettes sold in 2010

Thus, it has sold 54.79 billion cigarettes in 2010 against 54.98 in 2009, a mere drop of 0.3%. At the same time, the amount of rolling tobacco rose from 7257 to 7598 tonnes (+4.7%). In total, sales of tobacco (including cigars) increased by 0.14% by volume, according to figures from the observatory of drugs (OFDT). Again this year, cigarette sales in late July had declined by only 0.6% in volume compared to 2010.

Value, because of previous price increases, the market is increasing by about 5%. Growth shared by the state (almost 13 billion euros in 2010, including 2.5 under the VAT), tobacconists (8.2%) and manufacturers and distributors (11.8%). The anti-smoking groups believe that any increase less than 10% has no effect on consumption.The Office of Tobacco Prevention (OFT) ironically on Monday up seeing an "application" of the state "to the tobacco industry for agreeing to increase by more than 100 million profit."

Tobacconists and manufacturers recall their part that a sharp increase has an effect on sales in tobacco shops, without lowering consumption, since it encourages smokers to buy abroad or from resellers on the sly. A study of Customs estimates that 20% of cigarettes smoked in France are not purchased in the network of tobacconists, but fraud (5%) or legally (15%) in the neighboring European countries (Belgium and Spain) where the package is sell up to 30% cheaper.

These purchases, which exploded after the sharp increases in tobacco prices in 2003/2004, affecting particularly border trade, result in financial compensation from the state to tobacconists.A parliamentary report issued in early October to the Minister of Budget, recommends "a convergence of prices of tobacco in France and in neighboring states," but also "to reflect on the taxation of rolling tobacco" for "contrecarrrer the substitution effect for each increase in the price of cigarettes. "

The Greek Minister of Finance suggests a vicious cycle

Austerity measures are necessary to Greece to escape the vicious circle imposed on its economy and its debt and turn it into a virtuous circle, said Tuesday the Greek finance minister, Evangelos Venizelos.

The latter also found that the initial objectives of the European Union (EU) and the International Monetary Fund (IMF) to restore the Greek public finances were too ambitious.

He said the European agreement of 21 July on a new plan of aid to Greece was a Bible for the government of George Papandreou.

A delegation of the EU, the IMF and the European Central Bank (ECB) will return this week in Athens and Greece will receive next month a new tranche of eight billion euros to avoid bankruptcy, said Minister of Finance.

The Prime Minister will address this "troika" of the written assurances it requires on the austerity measures proposed by the government, said Evangelos Venizelos. Finance ministers of the euro zone will review these proposals and will then be unlocked using, he said.

"The release of funds will take place and will be held on time," he said.

The Dow Jones gained 0.07% Nasdaq 0.86% yield

Wall Street ended Tuesday in a dispersed a volatile session, as investors await the outcome of a two-day meeting Tuesday and Wednesday, the Monetary Policy Committee (FOMC) of the Federal Reserve.

The Dow Jones Industrial 30 closed up 0.07% or 10.65 points to 11,408.66 points.

The S & P-500, wider, has lost 2 points, or 0.17% to 1202.09 points.

The Nasdaq Composite fell on its side of 22.59 points (-0.86%) to 2590.24 points.

Faced with strong pressure on financial markets and fears of a relapse of the economy in recession, the Federal Reserve prepares to influence long rates to support economic activity, an action similar to that conducted in the years 60 and then christened "Operation Twist".

With an eye on the sinking of the crisis of sovereign debt in Europe and another on an unemployment rate fails to fall below 9% in the U.S., the Fed should gradually change the composition of its balance sheet to increase the share of long-term securities.

Some traders, however, warn that the rise could be short term, investors may be tempted to take profits after Wednesday's strong performance last week.

The International Monetary Fund (IMF) has also reduced its growth forecast for the United States in 2011 to 1.5% and 1.8% in 2012 against 2.5% and 2.7% respectively, projected in June.

The IMF, Europe and the United States may plunge into recession next year, said the International Monetary Fund lowered its forecast for global growth to 4.0% this year and in 2012, against 4, 3% for 2011 and 4.5% for 2012 projected three months ago.

The housing starts have also declined more than expected in August, falling 5% to a seasonally adjusted pace of 571,000 units, according to the Commerce Department (consensus: 590,000 units).

Values, the way Google Inc. has closed almost in equilibrium after adding Visa (3.12%) to the list of contributors to its proposed electronic wallet for mobile under an agreement that will allow customers Visa to conduct transactions from their mobile phones smartphones.

Athens has a payment of aid in September

Greece will comply with its program of fiscal austerity and expects to receive its sixth installment of aid as planned in September, said on Monday a spokesman for the Greek government.

This new tranche of aid granted by the European Union and the International Monetary Fund (IMF), should rise to 8 billion euros.

Friday, discussions between the Greek authorities and inspectors of the European Union, the IMF and the ECB have been suspended for ten days, the two sides disagreeing on the reasons and extent of the delay in the Athens reduce its budget deficit.

"We expect to receive the sixth round in September," said Ilias Mosialos reporters.

Athens invokes a recession more severe than expected, while its creditors in turn point to delays in the implementation of reforms such as reducing salaries in the public service, openness to competition and privatization of professions.

Greece is pressed to move forward on these reforms in the next ten days before the return of inspectors, to convince them that the country has made sufficient progress to be able to touch this new tranche of aid, even if it exceeded the objective of reducing its budget deficit to 7.6% this year, against 10.5% in 2010.

"We will put the program in place," said Ilias Mosialos.

Asked about the articles published in local media that Greece would seek to revise the goals of deficit reduction to reflect the impact of the recession, Mosialos Ilias said that discussions on this issue were ongoing.

The government estimates that the recession this year is 5% of GDP against 3.9% according to a recent projection.

"We have not requested a review of the objectives of the debt. We are in ongoing discussions with the Troika regarding the implementation of fiscal policy (…) and the macroeconomic indicators in general," has he said.

Your fears about the crisis are justified?

L'Expansion. Com sifts through the five main fears expressed by the French in these troubled times of economic and stock market crisis. A passerby looks at stock prices in Tokyo in March 2011. My bank can go bankrupt?

While banks face their worst tumble since the stock market subprime-Societe Generale to mention that it has lost over 45% in one month, investors began to fear for their savings. There are less than three months, however, French banks passed with flying colors the European stress tests, and announced in the wake of the results quite satisfactory, despite the provisions made after the support plan for Greece. Must we fear for the health of our banks? In a sense yes. They are highly exposed to sovereign risk, and would be the first undermined if the global economy would come back into recession.From there that they put the key under the door, there is not one that should not be crossed. If there's one thing the government learned from the 2008 crisis is that in no circumstances be allowed a systemic bank to fail. Another scenario is not excluded by cons: faced with the fall of their capital, some banks suddenly become very easy OPAbles, large could then use the crisis to swallow small …

My savings are threatened?

Almost all the French have a livret A and 62% have life insurance. Suffice to say that fears about saving people's minds occupied. The crisis that has engulfed stock markets since July, however, has no effect for now. She would only if one or more banks, unable to cash losses, went bankrupt.And even then, the Deposit Guarantee Fund (FGD) warrants to the tune of 100,000 euros per customer cash, that is to say money in current accounts and savings. It also covers securities-stocks and bonds, shares, mutual fund units to a maximum of 70,000 euros. Life insurance is a guarantee fund of the insured, which compensates each trustee to the tune of 70,000 euros. Your savings are safe.

Will I lose my job?

In the short term, but if the stock market crisis becomes a crisis in the real economy, it is a possibility. During the last economic crisis in 2008 and 2009, French companies have destroyed more than 350,000 payroll jobs, a record. However, it would have been welcome."French companies have taken on their margins up to prevent the dismissal, favoring the reduction of their payroll via the removal of precarious (temporary, fixed term contract)," says the expansion. Com Marion Cochard, an economist at the OFCE. That is why today they prefer to restore their margins rather than hiring. This explains why the unemployment rate does not fall significantly in the Hexagon. With this new crisis, firms may once again to postpone their investment projects, therefore hiring. This does not mean that they will terminate. Unless economic activity is a serious flu, and France plunged back into recession.In this case, employees of companies most vulnerable to global conditions (the automotive and manufacturing industry in particular) could face new social plans.

My taxes will increase?

Despite the mantra of Nicolas Sarkozy – there will be no general increase in taxes – reducing the public deficit tricolor requires the government to reach nearly 10 billion euros of additional revenue in 2012. To achieve this, he plans to create a new tax that would hit the richest households. It also plans to cut heavily in tax shelters. That is to raise taxes for households that benefit from these niches. Will be mainly concerned wealthy households, those who realize capital gains and real estate securities, investors in the overseas departments, real estate rental, etc..These tax increases should not affect low-income households and middle classes. Not for now at least. As to bring its public deficit to 3% of GDP in 2013, France can not help but raise taxes (VAT, CSG, etc.).. This course will be announced after the presidential election of 2012.

I can purchase real estate is at risk?

Yes. For three reasons. In 2008, after the collapse of Lehman Brothers, banks have tightened their lending conditions, businesses and individuals alike. Result, many households have had to give up their real estate project. It is too early to say whether the current instability will tighten credit, but given the losses suffered by banks in recent weeks, the probability is high. The other concern is that interest rates rise. Borrowing cost more, which will weigh a little more about the purchasing power of households' housing.Today, the rates of OAT [government bonds whose interest rates are used to set those credits] fall. But if France loses its triple A, or at least turn becomes the target of financial markets, the rates of OAT recover, and with them the credit rates. In addition, the government plans to reduce its deficit to plane several tax loopholes related to real estate in 2012: the tax cut under the Scellier will be reduced while the conditions for granting interest-free loan (PTZ) will be cured. What will weigh on the purchasing power of first-time buyers property.

Parisot opposes higher taxes for businesses

Asked about the fiscal tightening to come, the president of MEDEF opposes a heavier tax burden on businesses, which increased their production costs. It calls for a concentrated effort on reducing expenses. For the leader of the MEDEF, "Small and medium enterprises are the cleat of what they may experience as a tax burden."

The president of MEDEF, Laurence Parisot, ruled Monday that the government should be careful "not to penalize" companies not to stop growth, while it must present a Wednesday fiscal tightening to meet its commitments deficit."If we win tenths of a percentage point of growth, it is important not to penalize companies, it is important not to exacerbate their production costs," warned Ms. Parisot on France 2, but stressed that "efforts should collective being, "but to focus on reducing expenses.

The government must announce Wednesday a fiscal tightening needed to meet its commitments deficit in turmoil on financial markets. Asked about the available margins, the president of MEDEF, which is scheduled to meet Prime Minister Francois Fillon in the day, said that "small and medium enterprises are the cleat of what they may experience as a tax burden."

She, however, conceded that "there may be some room for maneuver in very large companies," without giving further details."They must also remain competitive globally," warned Laurence Parisot. The leader of the employers' association also estimated that there were other avenues to consider, such as public service delegations from the state to the private sector. "This would allow the state to spend less and companies to develop new on those sectors," she said.

2% growth, a target "hard to reach"

Laurence Parisot considered "very difficult" to achieve the government target of 2% growth in 2011, a figure considered unrealistic by many economists. "This is something that seems very difficult to achieve," said Ms. Parisot on France Televisions, while the French gross domestic product stagnated in the second quarter, indicating a sharp slowdown in economic activity.

The government's growth target is 2% in 2011, but many economists and analysts say the figure is unattainable, which complicates the preparation of budget 2012 and the commitments for deficit reductions public. The government Wednesday to unveil tracks withheld in an attempt to find additional funds to meet these targets. "If we do not show discouragement, we can continue to get these points of growth," however, felt Ms. Parisot.

The world could he really fall into recession?

The specter of a global economic recession haunts the markets. In Europe and the United States, growth has stalled. Even emerging markets are affected by this downturn.

Morgan Stanley estimated in a study released Thursday that the United States and the euro area are "dangerously close to recession". "Even if it is not our base case at this stage, we perceive a real risk of recession" in these two areas – the two largest in the world economy, said the U.S. investment bank. This warning has been a chilling effect on the markets. Facing the specter of another recession, global stock markets were again swept by a wave of panic.

In the euro area, growth has stalled: GDP grew only 0.2% in the second quarter.The two main area economies, Germany and France were particularly disappointed growth was near zero on both sides of the Rhine. Italy and Spain do little better (respectively 0.3% and 0.2%), while Greece and Portugal are in recession. "Growth may be lower than expected, lower than expected," admitted Van Rompuy, the president of EU and future president of the euro area. But we do not anticipate any negative economic growth, recession, "he said. Still, Morgan Stanley lowered its forecast for growth in the eurozone to 1.7% in 2011 (against 2% previously) and a small 0.5% in 2012 (against 1.7%).

30% chance that Europe and the United States falls into recession

The situation is hardly more reassuring to the other side of the Atlantic. U.S. GDP grew by only 1.3% in the second quarter, after only 0.4% earlier this year.The latest published indicators reveal a picture of a gloomy outlook for U.S. economy. The activity and industrial production are lower, inflation weighs on the purchasing power, the housing sector is still in the doldrums and unemployment remains above 9%. In a context of sluggish recovery, the U.S. economy does not actually create enough jobs to reduce unemployment (average 132,000 per month since the beginning of the year when it would take 150,000).

Accordingly, JPMorgan Chase Friday lowered its growth forecast for the United States. The U.S. investment bank estimates that U.S. GDP grew by only 1% in the fourth quarter of 2011 and only 0.5% in the first quarter of 2012. No analyst does, however, a recession (two consecutive quarters of GDP contraction) on one side or the other of the Atlantic at this time."The likelihood that the United States and / or Europe will fall into recession in the coming months is only 30 to 40%," says Patrick Moonen, senior strategist at ING IM. However, this risk is rising sharply, "he adds.

Two factors may tip the balance of advanced economies on the negative side. First, a continuation of the fall market. Transmission of the panic in financial markets on businesses and households could have disastrous effects. This pummel consumer, and especially it would encourage companies to postpone or cancel their investment projects.Or restocking and business investment are still the only engine that could drive growth in Europe and the United States.

Hopes the new U.S. stimulus plan

The second risk is that the austerity widespread in Europe and the United States do not create a vicious circle of negative growth: to reduce debt and deficits, states cut in social spending, investment and support growth (such as scrapping or tax exemptions). Result, households will consume more, business activity slows, then the state recorded less tax revenues and the deficit is widening even more. In Europe, this cycle does seem engaged: when they are threatened with recession, the peripheral countries of the euro area are competing austerity.Spain has voted to sell a new austerity plan intended to save an additional EUR 5 billion within two years. Italy has it announced an austerity plan of 45 billion euros last week. France plans to follow suit Wednesday, August 24 with listings of suppression of new tax loopholes.

The hope may come from the United States. Barack Obama raised the possibility of a new fiscal stimulus to support the economy. The U.S. president will unveil his plan in September, but we already know that it will focus on employment. This would include extending the declines in social contribution rates for employees and businesses, as well as long-term unemployment compensation, to ensure the financing of private projects or tax cuts that affect businesses.The project, which would increase the deficit for Uncle Sam 2.5 percentage points of GDP, would have little effect on growth, according to experts at Natixis. But it will avoid a fiscal tightening de facto linked to the expiry of the recovery plan of 2010, tightening that might prove disastrous for U.S. growth in 2012.

And even if Europe and the United States experience periods of zero or negative growth in the coming months, the world does not mean plunge into recession, as in 2009. Today, 80% of global growth is provided by the emerging countries, China and India in mind. Certainly they will not be spared by the global slowdown in activity, but their good performance should cushion the poor in developed countries. Morgan Stanley still expects global growth of 3.9% in 2011 and 3.8% in 2012.